AFEX, a leading African commodities platform, has received a $26.5 million investment from British International Investment (BII), the UK’s development finance institution and impact investor. The partnership aims to boost food security and improve the livelihoods of smallholder farmers in Nigeria, Kenya, and Uganda.
AFEX operates over 200 warehouses in the three countries, serving more than 450,000 farmers. It gives them access to inputs, credit, insurance, storage, training, and markets. It also uses technology to capture post-harvest pricing and reduce losses.
BII’s investment will enable AFEX to build 20 modern warehouses strategically, adding 230,000 metric tons of storage capacity. This will allow up to 200,000 more farmers to store their crops and maximize their sales, potentially increasing their incomes by over 200 percent.
BII will also support AFEX to develop a soybean processing plant in Ibadan, Nigeria’s third-largest city, and a drying facility in Uganda. These projects will create over 700 temporary jobs and more than 80 permanent roles.
The deal was signed on Tuesday in Lagos, with the attendance of British Deputy High Commissioner Jonny Baxter, BII Chief Executive Officer Nick O’Donohoe, and AFEX Group CEO Ayodeji Balogun.
Balogun said the investment was a landmark moment in AFEX’s mission to revolutionize agriculture and elevate food security across Africa.
“By directing fresh capital towards the development of technologically advanced warehouses and critical facilities, we are significantly enhancing market access and income potential for smallholder farmers,” he said.
O’Donohoe said BII was proud to partner with AFEX to support structural improvements in Africa’s agricultural sector.
“Agriculture is a vital source of income and employment for millions across the continent. By investing in infrastructure and technology, we can help smallholder farmers increase their productivity, reduce post-harvest losses, and access better crop prices,” he said.
The investment comes at a time when Africa is facing food insecurity challenges due to climate change, population growth, and the COVID-19 pandemic. According to the Food and Agriculture Organization (FAO), about 282 million Africans are undernourished, accounting for 30 percent of the global total.
AFEX is one of the innovative solutions addressing this problem by linking farmers to markets and providing them with quality services. The company has partnered with organizations such as Mastercard Foundation, OCP Africa, and USAID to advance its vision.
With BII’s backing, AFEX hopes to scale up its operations and reach more African farmers. It also plans to expand into other countries, such as Ghana, Tanzania, and Ethiopia, in the near future.
Source: Nairametrics
